Letter to NZ Herald re Economic Growth

Excellent summary by Bryan Gould (Global crisis shows need for revision of economics 27/01/09) about how we must revise the current economic model. Shame he misses a fundamental point.

If we are to rethink economics perhaps we should look at what the word itself means. “Economy” is derived from the ancient greek words Ecos (home) and Nomos (customs). The word Ecology is derived from the ancient Greek words Ecos (home) and Logos (knowledge).

The difference between our knowledge of the Earths systems and the customs we have developed to manage it, is that there is no such thing as unfettered growth in natural systems. Natural systems grow and reach stable state. Those that don’t manage to achieve that beneficial equilibrium, i.e parasites and cancer, continue to grow unchecked until they destroy themselves and often their host system. Yet constant growth is the “untouchable” pillar of free market economic dogma.

Its time we headed the signs, every environmental and economic indicator is telling us our systems are threatened. We have reached our limits.

It is time to look beyond classical economics, beyond Keynes and start looking at the stable state theories prescribed by John Stuart Mill and many others since. Models that acknowledge that economics is a wholly own subsidiary of the earths’ systems, therefore must operate by the rules set by those systems. If we don’t, the “tapeworm” model that is bleeding our economies and our planet dry will leave a very bleak for future generations